Money Management Strategy

Personal financial planning by Jove

What is money management strategy ?

● It is the practice / technique that is used to control an individual’s finances

● It helps individuals create plans on how to spend, save, and invest the money they own

● These plans should be aligns with an individual’s financial goals and values
Clear mindset to handle Opportunity Costs

Managing money is deeply related to “opportunity cost”

Opportunity costs are the valuable cost that we are willing to give up in return of having another
opportunity.

The most important mindset to have is to focus on the goal instead of the short-term pleasure
received from obstacles
Importance of Personal Record System

● Tracks all of an individual’s cash flow

● Helps evaluate an individual’s financial position
● Shows what you own
● Shows what you owe
● A tool to measure progress towards goal
Budgeting an Individual’s money and its system

● Budgeting is different for different goals and different financial positions.

● It is also important to evaluate the ratio between an individual’s income and expenses
● 50/30/20 rule of budgeting framework
● Adjusting to the framework can either fasten up or slow down the time it takes to reach the
goal
● Make sure you can live with the system
Characteristics of successful budgeting

1. Already measured against the actual spending activities at a period of time

2. Realistic
3. Moves you forward towards your goal
4. Flexible so you don't deprive yourself
Worth to mention

Taxes and other external factors should be accounted for in the budgeting to have a more
accurate financial budgeting.
Thank You